Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 22 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to address the need for improved financial management and accountability across Commonwealth agencies. This Act provides the legal framework for financial administration within the public sector, ensuring that public funds are managed efficiently and effectively. The 2004 legislative instrument under this Act facilitates the transfer of specified appropriations between different agencies to better align resources with the strategic objectives of the government. This particular direction, issued by Anne Hazell, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, on 23 December 2004, aims to re-allocate administered expenses from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Health and Ageing. The policy objective here is to ensure that the financial resources are appropriately directed to support the outcomes and priorities of the respective agencies as defined in the appropriation acts.

Scope and Application

This legislative instrument, F2006B11675, issued under section 32 of the Financial Management and Accountability Act 1997, concerns the transfer of specific appropriations from one government agency to another. It applies to the Department of Immigration and Multicultural and Indigenous Affairs and the Department of Health and Ageing, as identified in the attached schedule. The instrument directs the transfer of funds related to administered expenses for specific outcomes as listed in the Appropriation Act (No. 1) 2004-2005. The directive applies to the Commonwealth level, affecting the financial operations and management within these departments. This legislative instrument does not specify any exclusions, exemptions, or thresholds, but it does detail the exact appropriation items and the agencies involved in the transfer. The scope of this directive is limited to the financial reallocation as specified and does not extend beyond the parameters of the appropriation items listed.

Key Provisions

The primary operative section of this legislative instrument is section 32 of the Financial Management and Accountability Act 1997 (section 32). This section empowers the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, in this case, Anne Hazell, to direct the transfer of specified funds from one agency to another. This direction is documented in the attached schedule, which lists the appropriation items, the 'old agency', the 'new agency', and the amount to be transferred. For example, the appropriation item for Administered Expenses, Outcome 5, which was initially allocated to the Department of Immigration and Multicultural and Indigenous Affairs, is to be transferred to the Department of Health and Ageing, with a specific amount of $2,894,650. The Act imposes clear obligations on the parties involved in the transfer of funds. The Division Manager, in this case Anne Hazell, must ensure that the transfer of funds is documented and recorded accurately in accordance with the directions provided. The 'old agency' must facilitate the transfer of the specified funds to the 'new agency' by the date stipulated in the direction. The 'new agency' is required to receive the funds and ensure they are accounted for appropriately within their financial records. All agencies involved must adhere to the Financial Management and Accountability Act 1997 to ensure compliance with financial management regulations. Any breach of the obligations outlined in this legislative instrument may result in various consequences. Under the Financial Management and Accountability Act 1997, any individual or entity that fails to comply with the directions may face civil or criminal penalties. The specific penalties can vary depending on the nature and severity of the breach. For instance, individuals may face fines, imprisonment, or both. The maximum penalties for offences under the Act can include substantial fines and imprisonment for up to five years. These provisions ensure that there are significant deterrents against non-compliance, thereby maintaining the integrity of the financial management system in Australia.